Hey there! Ever wondered how the US economy can be booming while inflation just won't chill? 📈🔥 Let's dive into this economic rollercoaster!
In April, the US saw the Consumer Price Index (CPI) rise by 3.4% year-on-year, slightly down from 3.5% in March. Good news, right? Well, kinda. It's a step in the right direction, but still miles away from the Federal Reserve's 2% target. 😬
What's keeping inflation high? Surprisingly, it's not international energy prices. Instead, housing costs have been the main culprit, jumping 5.5% compared to last year! 🏠💸
Back in June 2023, inflation dipped to 3.0%, and everyone was like, 'Finally! A Fed rate cut is on the horizon!' But then, CPI crept up to 3.2% in July and hit 3.7% in August. Now, with the latest 3.4% figure, it's clear that inflation isn't throwing in the towel just yet. So, the Fed is stuck holding off on any rate cuts. 😕
But here's the plot twist! Despite high inflation, the US job market is flexing its muscles. In April, a whopping 253,000 non-farm jobs were added, dropping the unemployment rate to just 3.4%—the lowest since 1969! 😲🎉
This strong employment growth is a double-edged sword. While more jobs are great, they also push up wages, which can fuel inflation further. It's like a never-ending cycle! 🔄
So, what's next for the US economy? Will the Fed find the right balance between taming inflation and supporting growth? Stay tuned! 📺
The US economy is a wild ride right now, with stubborn inflation and a booming job market. It's a mix of good vibes and headaches, but one thing's for sure—we're all watching to see what happens next! 👀
Reference(s):
The coexistence of U.S. stubborn inflation and robust economy
cgtn.com
